Bulletin: NY000105

Dear Associates:

Under existing law, since a cooperative apartment unit has been considered to be in the nature of personalty, a husband and wife could own such a unit only as tenants in common or as joint tenants with right of survivorship.

However, as a result of an amendment to Section 6-2.1 and 6-2.2 of the Estates, Powers and Trusts Law (Chapter 480 of the laws of 1995), signed into law on August 2nd by Governor Pataki, a husband and wife can own a cooperative apartment unit as tenants by the entirety. The amendment, which becomes effective on January 1, 1996, provides that a disposition (on and after 1/1/96) of the shares of a cooperative apartment unit and proprietary lease thereto to a husband and wife creates in them a tenancy by the entirety, unless expressly declared to be a joint tenancy or tenancy in common.

The amendment further provides that a disposition of shares of stock in a co-op apartment corporation allocated to an apartment or unit and the proprietary lease thereto, to persons who are not married to one another but who are described in the disposition as husband and wife, creates in them a joint tenancy, unless expressly declared to be a tenancy in common.

Please be aware that the above-mentioned amendments do not affect co-op interests acquired prior to January 1, 1996.

Should you have any questions regarding this subject, please contact Company Counsel.